Is your product or service a commodity?  That is, can your potential customers find a something similar from other providers?  If so, you are probably having problems selling that have nothing do with your skill or the quality of what you are selling.

Commodities aren’t sold, they’re bought.  When all of the offerings are the same, price is the only distinguishing factor; and customers are going to search for the cheapest price.  It’s why generic brands are found in grocery stores – there’s not much that distinguishes the products from each other (rice is pretty much just rice).

If you have a product or service that has been commoditized, you have two options.  The first is to simply play the price game – which is a hard game to play because competition drives the price to a point where there’s no marginal profit.  The second path involves adding something to your offering that differentiates it from the rest of the market.

The second path is valuable because once you have a feature that’s different, you have something that you can “sell”.  There are a number of ways that you can differentiate what you offer, including:

1. Superior Knowledge – Can you be the expert in your field?  If you create a reputation that you have the experience and know-how to handle a specific segment of your market, people will come to you.  An example of is doctors who are specialists or auto mechanics who focus on one type of car (e.g. Volkswagens or diesel engines).  Customers that have challenges in your field of expertise will seek you out.
2. Outstanding Service – Why do people shop at high-priced boutiques when Wal-mart has proven it can sell everything dirt-cheap?  Quality is part of it, but in the end a pair of jeans is a pair of jeans.  Customers are willing to pay more for the personalized service they receive at those smaller stores.  The shopping experience they have in high-end stores is worth the extra money.  Even if you aren’t in retail, is there a way you can provide amazing customer service so that people will tell their friends about you?
3. Guarantee – How do you back up your products and services?  Guarantees and warranties are simple and powerful ways to differentiate yourself.  For example, Nordstrom’s will accept any returns, and Cutco Cutlery will sharpen or repair their products forever.  The stronger the guarantee, the more confidence people have when they buy your product or service.  What can you put in your guarantee that will make customers more comfortable and therefore more willing to pay for what you are offering.
4. Unique Feature – If what you have is similar to everything else that’s on the market, search for something that can be different about it.  Even though there were other ways to ship packages, Federal Express found a unique feature – do it overnight.  Continue to search for a feature of what you do that can be tweaked, and use that as a way to separate yourself from the others.  Because if you can’t, you’ll be stuck selling a commodity.

On a scale of 1–10, how good are you at the “soft skills” of interpersonal communication.  How well do you listen, speak, read other people’s body language, etc.?  They go by many names: people skills, relational ability, emotional intelligence.  These are the skills sets that ultimately determine how successful you are in communicating with other people. 

But what if I told you that your knowledge of these skills was also one of the biggest determinants of your professional success?  No matter what industry, profession, or trade, the most successful practitioners are the ones who not only have the right technical skills, but who combine their knowledge with highly developed people skills.   No matter what you do for a living, then, your abilities to communicate with your peers is critical for your professional growth.

So if these skills are so important, why are they overlooked?  It’s because we are engaged in communication every day!  We don’t think that there is anything to work on because we are constantly communicating with others.  It’s easy to gloss over our people skills; we assume that they are already good and we don’t want to admit that we might have to make some changes.

The trap most people fall into is the assumption that these skills will improve naturally without specific focus or effort.  Many people assume they don’t have to purposefully study communication, for example, because they “talk to people” everyday.  There’s a big difference, though, between engaging in an activity and working to improve that activity.  The most successful individuals are consistently putting attention on how they build their ability to communicate.

So the question is, what are you doing to improve your people skills?

There are a lot of ideas out there about how to become a better networker.  There always seems to be a new trick or tool that promises to help your networking be more effective and get you more business (heck, I’ve probably given out a few of those).  And it doesn’t hurt to have some strategy to your networking.

But the most effective idea for power networking:

Have fun! 

Networking is about relationships, and relationships work best between people who are enjoying themselves.  Find the fun in learning about other people and their stories.  Because the more you do that the stronger the connections will be between you and your networking partners.  And the stronger the connections, the more likely you are to find ways to help each other professionally.

It’s easy to see networking as just another activity you have to check off of your to do list, but the reality is that the more you enjoy it, the more you will gain from it. 

When it comes to motivation, there's a gap between what science knows and what business does. Our current business operating system – which is built around external, carrot-and-stick motivators - doesn't work and often does harm. We need an upgrade, and science shows the way. This new approach has 3 essential elements: 1)Autonomy...2)Mastery...3)Purpose.

(right from Dan's recap on page 203 – thanks, Dan!)

Ideas, Implications, and Questions

• I think that Drive has big implications for how to manage and reward salespeople, but I'm not sure what those implications are. Dan makes the distinction between algorithmic tasks (which are based in routine) and heuristic tasks (which involve creative problem solving). While most jobs tend to lean towards one or the other, success as a salesperson requires both. For example, most prospecting activities, such as making phone calls, are relatively routine. At the same time, the sales presentation can require a great deal of creativity and other “soft” skills. If this is the case, what's the best way to motivate salespeople? Dan points out the “if,then” rewards can actually diminish success at tasks that require creativity or broad thinking. Does that mean that sales contests and commission-based pay don't work? Does it make sense to tie rewards to the activities involved in selling instead of the results, I.e rewarding number of calls? Furthermore, many salespeople are actually highly competitive and driven by rewards; does that mean that “if, then” actually works for them?

• A powerful concept for Dan is his idea of Motivation 3.0 (Motivation 1.0 is survival and Motivation 2.0 is the carrot-and-stick method of rewards and punishment). The three components of Motivation 3.0 are:

  • Autonomy – Especially around time, task, team, and technique

  • Mastery – The continuous, and long-term, development of competence

  • Purpose – Shifting away from a pure profit-motive towards a purpose-motive

• Does the idea of Motivation 3.0 require a relatively well-educated, highly-actualized employee? It seems that many people say they would like autonomy, or that they are working towards mastery, but their performance at their position doesn't bear it out. I think that there are strong connections here for the evolution of the “knowledge worker”, but I think there are large groups that this doesn't apply to as easily.

• I think Drive points out the necessity of training and development, especially for organizations that want their staff to operate at these higher levels of motivation. For example, if purpose is an important aspect of motivation, it makes sense to help people connect with their purpose. If autonomy is important, helping individuals manage their time effectively (as well as develop the other skills necessary for self-direction).

Should you read this book? Who should read this book?

This is a very worthwhile read for anyone who is responsible for working through other people. It has many intriguing implications for those who have to move other people to action.

• Retail/Hospitality Managers
• Dept. Supervisors
• Sales Managers
• Creative Directors
• Human Resource Professionals

Over the last century (and decade), there has been an ever-growing number of communication tools available to us.  It used to be that the only way to talk to someone was to find them and actually speak to them (or maybe mail them a letter).  Now with the rush of new technologies, there’s a virtual buffet of options when you want to reach out to someone.

It’s important to remember, though, that not all forms of communication are created equal.  This is especially true in the business world, and even more critical when having a conversation where your goal is to influence someone else’s actions (for example, a sales call).  Business success is often based on relationships and relationship are based on communicating.  Don’t get trapped in using a communication method because it’s convenient – it might not be that effective.

Here is a ranking of the different major communication tools that are available – from most effective to least effective. 

1. Face-to-Face Conversation
2. Skype/Video Conferencing
3. Telephone Conversation
4. Written note/letter
5. VoiceMail Exchange
6. Email
7. Text Messaging
8. Facebook Wall Post
9. Twitter

There will be some variation based on circumstance, but it works as a general rule of thumb.   For example, it’s better when we can see the person we’re speaking to because a great deal of interpersonal communication is in our body language and facial expressions.  But if that’s not possible, it’s still better to at least hear the tone of their voice.

Is this list the last word in how you should communicate?  Absolutely not.  Does it mean that every time you want to effectively communicate with someone you need to speak to them face to face?  No way.

It does mean that you should carefully consider what method to use if you are going to have an important conversation.  Use the list as a guideline.  If you find that most of your interaction is towards the bottom, you might want to reassess how you choose to reach out to others.  By using the proper tools and technologies, you’ll find it’s much easier to communicate and influence others.

We all know someone who hides behind email at work – don’t be that person.

Big Thought

Because the modern consumer is overwhelmed by information, the most effective way to market is to create products and services that are remarkable and stand out – leading people to want to talk about them.

Ideas, Implications, and Questions

• It’s interesting that Seth focuses on a “holistic” view of marketing: instead of seeing marketing as something separate from the product development, what the product is and how it is marketed are intimately linked.  You can’t just have a humdrum product and expect a glitzy ad campaign to sell it.  “Stop advertising and start innovating.” (pg 4).
• “The post-consumption consumer is out of things to buy.  We have what we need, we want very little, and we’re too busy to spend a lot of time researching something that you’ve worked hard to create for us.” (pg 3)  Which is why traditional advertising, centered around spewing out as much noise around a topic as possible, isn’t working anymore.  People don’t have the time to be interrupted anymore, and they don’t want to listen.
• A critical idea for smaller businesses is differentiation.  Creating a marketing niche is important, especially for service providers, because it helps them avoid being lumped in with “the crowd”.  This is often counterintuitive: the way a company grows larger is by targeting a smaller segment of the market.  It’s worth spending the time and energy up front to understand 1) what makes your company different and 2) how you can communicate that difference.
• Reading Purple Cow is a little schizophrenic, because you realize that there is no single way to create a remarkable product.  Sometimes it’s about being faster, sometimes slower; sometimes bigger, sometimes smaller, sometimes cheaper, sometimes more expensive.  If you’re looking for a blueprint for a Purple Cow, you’ll be disappointed. Seth points out that it’s about experimentation, and trying new ideas – and being OK with failing at some of those ideas.  As he writes, “…if it was easy to become a rockstar everyone would do it!” (pg 49)

Should you read this book?  Who should read this book?

For anyone who is responsible for marketing themselves or someone else, this is a valuable read.  Seth points out why traditional marketing doesn’t work well, and how to explore new ways of creating products and marketing messages that could work in the future.  It’s a great place to go find some inspiration and ideas to try in your business world.

Definitely read Purple Cow if you are:

• In marketing
• A small business owner marketing your own company
• An entrepreneur developing a new product or service

 Read Seth's blog for additional thought-provoking ideas!

These days it seems like networking events are springing up everywhere.  No matter where you live and work, you could find a networking breakfast or cocktail reception to go to every day of the week.  Many of these events brag about how large they are, and how many people you can meet by attending.

There’s nothing wrong with going to these large events, but many people find them overwhelming, and it’s hard to make good connections in the hustle and bustle of a crowded room.  What can you do?

Put together your own networking event.

It’s not as hard as it sounds, and it can be very rewarding.  The goal here is not to have a huge event, but rather one attended by 5–7 professionals that you want to get to know and that you think would benefit from knowing each other. 

5 Steps to Your Own Networking Event

1.  Pick a place:  It helps to make the venue centrally located and easy to access.  Coffeehouses and bars work the best (depending on time of day) because then everyone can buy their own beverage and there are no other costs.  Restaurants are nice, but then you have to worry about paying for food and all the other hassles.

2.  Invite people: It’s best to invite 10–12 contacts - about half will be able to attend.  Choose people that you want to network with, but also who you feel will want to get to know each other.  Two criteria to look at are their jobs and their personalities.  It helps (but is not essential) if everyone shares a common type of customers (e.g., realtors, insurance agents, and mortgage providers).

3.  Set a Time: The two best times to meet are right before or after work.  You can also meet during the day if you know that all of the attendees have flexible schedules.  It doesn’t have to be long, even an hour can be enough time to give everyone a chance to chat.

4.  Send the invitations:  Email is fine, or depending on your industry, Twitter.  You can also give people a quick call.  A simple invite works well:

“I’d like to invite you to an informal networking event that I’m planning at Joe’s Coffeehouse on July 17 from 8–9am.  There will be 5–10 attendees, and it’s a chance to really get to know some great contacts for your professional network.  Please RSVP by July 10; I really hope you can make it.”

5.  Network:  The whole point of the event is for people to meet each other and have conversations.  Because you’re the host and you know everyone (at least by name), be sure to introduce each of the attendees to each other.  Because it’s a small group, you don’t need the formality of name-tags.  If the group is on the smaller end (around 5) it can be effective to have one conversation going around the table.  If it gets bigger, people will naturally want to have a number of side conversations.

Be sure to have everyone pass out their business cards, and encourage the participants to follow up with each other after the event.  Not only will you have stronger connections with your network, but everyone will appreciate the new contacts to whom you’ve introduced them!

Happy Networking!

Hey everyone.  As I continue to build and add to the RockStar Consulting Facebook Page, I’d love to create a bigger community of RockStars.  My good friend and social media consultant, Liz, suggested I have a fundraiser to help bring new people in and I thought that was a great idea!

So here’s the deal.  Between now and July 15, my goal is to grow to 250 Likers for the RockStar Fan Page.  For every new “like”, I’ll donate $1, and if we hit 250 by July 15^th, I’ll add another $50 on top!

I’m going to donate the funds to my sister Laura’s classroom.  She’s an amazing special-education teacher and will be using the money to help pay for supplies and snacks for her students in summer school.

I’m super-excited about this, and I hope you’ll help me hit this goal.  What can you do to make sure we hit it?  Here are a few ideas:

• Make sure you have “liked” the Page
• Use the “Suggest to Friends” feature on the top left hand of the Page
• Comment on posts so that your Facebook friends will see us on your news feed
• Share it on Twitter, LinkedIn, and other social media sites
• Tell anybody you know who would like the page
• Send some smoke signals….OK, I guess you get the idea

Thank you so much for being a part of the RockStar community, and thank you in advance for helping me grow our Facebook Page!

RockStar Consulting Facebook Page

Do you want to make your networking efforts more effective?  Many of us get frustrated by networking because we find it difficult to create meaningful business relationships in which both people involved know the other and want to help.  It’s easy to get stuck in a never-ending cycle of large networking events and business cards that never produces results (or enjoyment, for that matter).

There are two steps to breaking the pattern.  The first is to invite some of the professionals you are meeting at these networking events to a cup of coffee.  It’s hard to get to know someone in a big, crowded room, but much easier during a 45–minute conversation at your local coffeehouse.  You don’t have to invite everyone you meet; reach out to the people with whom you feel you could create a mutually-beneficial connection, or those whom you simply enjoyed meeting.   

The next step is to have a really good conversation over that cup of coffee.  Think of it as a first date for business.  The trick is to ask genuinely sincere questions, so that you can uncover information about the person, their business, and how you can help them.  What’s great is that as you ask questions, they will usually reciprocate and ask you in return.  By asking insightful questions, you’ll find that you have many connections with your networking partner, and you’ll find ways you can help each other professionally.

Below are 21 questions (20 plus a bonus) that you can use to help direct your conversation.  You don’t have to go straight down the list asking the questions one after the other.  Rather, use it as a guide or as a prompt during your conversation.  At the end of your conversation, the more you know about the other person and their business, the better your professional relationship will be. 

1. Where are you from?
2.  Where did you go to school?
3. What is your degree in?
4. How long have you lived where you live
5. Why do you live there?
6. Why did you choose your current career?
7.  What did you do before this position?
8.  What do you like best about what you do?
9.  What do you like least about what you do?
10. Where do you see your career in 5 years?
11. Why do you do what you do?
12. What are your favorite types of people to work with?
13. What’s the best quality of your company?
14. What is unique about your company and how you work?
15. What is your biggest obstacle in the next year?
16.  What is your biggest business opportunity this  year?
17. What other organizations are you involved with?
18. What do you like about them?
19. What are your favorite hobbies?
20. What do you think of people in my line of work?
21. How can we help each other’s business grow?

Big Thought

Definition of a black swan event:

“First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility. Second, it carries an extreme impact.  Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable.  I stop and summarize the triplet: rarity, extreme impact, and retrospective (though not prospective) predictability.” (pg xvii)

Ideas, Implications, Questions

• The Black Swan is a book so densely packed with thought-provoking content that it’s hard to pick the key ideas that cover all of Nassim’s theses.  But a few thoughts (besides the titular black swan) do stand out:
• Nassim makes a distinction between two different types of event distribution; what he calls Extremistan and Mediocristan.  Mediocristan encompasses events where there can’t be much variability in the measurements – for example, the height of a person.  No matter how much you look, you won’t find a 20–foot-tall person.  By contrast, “in Extremistan, inequalities are such that one single observation can disproportionately impact the aggregate, or the total.” (page 33)  An example would be individual wealth; if you have a big enough sample, most people will hover around a certain amount of money, but you will also have someone like Bill Gates who skews the results.  He makes the argument that most of the modern world is not governed by the rules of Mediocristan, but rather Extremistan; “almost everything in social life is produced by rare but consequential shocks and jumps.” (pg xxiv)
• In contrast to the internet-driven, multiple streams of income craze of the the last 10 years, Nassim points out the scalable professions, any arena where effort can be separated from results (e.g. writing and selling a book, audio-program, or e-book), are prone to the unequal distribution of results.  For example, J.K. Rowlings has sold millions of Harry Potter books, while over 90% of books sell less than 1,000 copies.  A scalable profession is only good if you are successful in it, just ask the hordes of starving actors.  So it’s always a gamble to work in a field that is subject to “Extremistan”. (pg 106)
• Beware of experts!  Nassim points out that in many fields (for example, finance), “experts” are no better at making predictions about the future than anyone else.   This is because there are so many variables involved, and because there is always the chance of a Black Swan event.  It becomes more of a problem when the experts “don’t know what they don’t know.” (pg 147).  This is what Nassim calls epistemic arrogance – we won’t acknowledge the limits of our knowledge.
• The best single idea I got from the Black Swan is this: “Missing a train is only painful if you run after it!  Likewise, not matching the idea of success others expect from you is only painful if that's what you are seeking. “ (pg 297).  I remember this every time I just miss the train – it’s only a problem if I needed to be on that particular train, and as humans, we’re very bad at figuring out need.

Should you read this book?  Who should read this book?

Absolutely.  I think that The Black Swan is one of the most intellectually compelling books I’ve read, if not the most.  I think that Nassim points out fundamental problems that we’ve created in our economic and social systems and recognizing these challenges is the first step to solving them.  For example, the problems in the financial markets in the last 2 years are driven by the black swan effect and the narrative fallacy.  The faster we recognize the limits of our thinking, the faster we can minimize the impact of future calamities.

Read this if you are:

• Human – yes, I think everyone should read it.

Find out more about Nassim Taleb at his website.

And see his ten ideas to fix the financial crisis.